Which of the following offenses involves the illegal appropriation of funds?

The offense that involves the illegal appropriation of funds is embezzlement. Embezzlement specifically refers to the fraudulent taking or misappropriation of funds or property entrusted to an individual's care, typically in the context of employment or a fiduciary relationship. This offense is characterized by the breach of trust that occurs when someone who is in a position of responsibility unlawfully uses the funds for personal gain, thereby violating the trust placed in them regarding the handling of those funds.

In contrast, burglary involves breaking and entering into a structure with the intent to commit a crime inside, typically theft, but it does not inherently involve the appropriation of funds that one is entrusted with. Larceny is the unlawful taking of someone else’s property without permission, with the intent to permanently deprive the owner of it, and is not specifically about the fiduciary responsibility over funds. Arson refers to the willful setting of fire to property, which also does not pertain to financial misappropriation. Consequently, embezzlement uniquely focuses on the misappropriation of funds that were entrusted to an individual, making it the correct choice.